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Imported beers at a South Korean convenience store. (provided by CU)

A boycott of Japanese products by South Korean consumers is having visible effects.

According to figures released on July 8 by the convenience store chain GS25, sales of Asahi, Kirin, and other imported Japanese beers for the period July 3–7 were down 23.7% from the previous week. Overall sales of all beer, however, increased by 1.2% over the same period. With Japanese beer sales falling slightly by 1.2% on July 3–4, the numbers suggested a large drop in sales over the weekend dates from July 5 to 7. As a result, Asahi slipped to second place as the market share for its large 500ml cans dropped from 13.3% (first place) to 10.0%.

In the case of the CU convenience store chain, total beer sales for the period July 1–7 were up by 2.6% from the week before, while Japanese beer sales fell by around 11.6%. At CU as well, Asahi slipped from first to third in sales, being overtaken by Tsingtao (second to first) and Heineken (third to second). Total beer sales at 7-Eleven convenience stores rose by 1.9% over the same period, while Japanese beer sales slipped by around 9.2%.

A similarly sharp decline in Japanese beer sales was also seen at supermarkets. At Lotte Mart, Japanese beer sales fell by 10.4% for the period July 1–7 – a much steeper rate than the 2.9% decline observed for all imported beer sales. At e-mart stores, imported beer sales rose by 2.9% during the same period, while Japanese beer sales tumbled by 14.3%. The phenomenon – with Japanese beer sales alone experiencing double-digit slides even as overall beer sales rise slightly amid the hotter summer weather – is being attributed to a boycott against Japanese products in the wake of the Japanese government’s export controls on key semiconductor and display materials.

“There have been boycotts of Japanese products in the past whenever South Korea-Japan relations have soured, but they never had that great an impact,” said one industry source.

“It appears that the effects of the boycott this time have been far faster and more apparent because it’s a case of direct economic controls,” the source suggested.

Some analysts are suggesting that boycott’s ripple effects could increase as some retails declare outright halts to their sales of Japanese products. The Korean Federation of Small and Medium Business has announced plans to return all Japanese cigarettes and beer at member stores, while the Korea Supermarkets Alliance has said it will participate in the boycott of Japanese products.

By Hyun So-eun, staff reporter

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